Item A: LumaLiving sells lighting online. Its financial and market data are shown below.
| Measure | Year 1 | Year 2 |
|---|---|---|
| Sales revenue | £2.40 million | £2.76 million |
| Gross profit | £960,000 | £1.02 million |
| Net profit | £216,000 | £138,000 |
| Market share | 6.5% | 7.4% |
Customer complaints about late deliveries increased from 420 to 890 in Year 2.
State one non-financial indicator of LumaLiving's performance.
Calculate LumaLiving's net profit margin for Year 2.
LumaLiving is considering two priorities:
Option 1: Continue prioritising sales revenue and market-share growth
Option 2: Slow its expansion while reducing costs and late deliveries
Justify which one of these two priorities LumaLiving should choose.
37 exam-style questions on Edexcel GCSE Business 2.4 Making financial decisions, covering 2.4.1a Gross and net profit, 2.4.1b Margins and average rate of return, 2.4.2a Using quantitative business data, 2.4.2b Financial information: understanding performance, and 2.4.2c Financial information: making business decisions. Each one has a worked solution and a mark scheme showing where the marks go.